TRENTON
- Division of Criminal Justice Director
Vaughn L. McKoy announced that a PA man
has been charged by the Office of Insurance
Fraud Prosecutor with participating in
a scheme to get rid of at least two automobiles
by setting them on fire and reporting
them stolen in order for the owners to
submit fraudulent insurance claims.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, Robert Halpin, 23, Leary Drive,
Horsham, PA, was charged with two counts
of arson for hire (1st degree), conspiracy
(2nd degree), aggravated arson (2nd degree),
arson to collect insurance proceeds (3rd
degree), and attempted theft by deception
(3rd degree). A first degree crime carries
a maximum penalty of up to 20 years in
state prison and a fine of $200,000, while
crimes of the second degree carry a maximum
punishment of up to ten years in state
prison and a fine of up to$150,000. Crimes
of the third degree carry a maximum punishment
of up to five years in state prison and
a fine of up to $15,000. Additionally,
Halpin faces possible civil insurance
fraud fines pursuant to the Insurance
Fraud Prevention Act.
Prosecutor
Gooden Brown noted that the State Grand
Jury indictment alleges that on Nov. 2,
2002, Halpin met Joseph A. Cirino, Jr.,
32, Wilson Drive, Sicklerville, Camden
County, in the WalMart parking lot located
in Berlin, Camden County, to arrange for
the purported theft of Halpin’s 2000
Honda Accord. During the parking lot meeting,
it is alleged that Cirino gave Halpin
$500.00 cash and the keys to the Honda
Accord. It is charged that Halpin was
to take Cirino’s car to an undisclosed
location and set it on fire in order that
Cirino could discontinue lease payments
and file a fraudulent insurance claim.
According to the indictment, Halpin carried
out the scheme and set fire to Cirino’s
Accord. Cirino reported the vehicle stolen
to police and submitted a stolen vehicle
claim to the Allstate Insurance Company.
On Aug. 18, Cirino pled guilty before
Camden County Superior Court Judge Linda
G. Baxter to a charge of arson of property
for the purpose of collecting insurance
proceeds. Sentencing is pending.
The
State Grand Jury indictment also charges
that on July 1, 2003, Halpin was paid
$500.00 to set fire to and destroy a 2001
Nissan Altima. Unknown to Halpin, the
arrangements to destroy the vehicle were
made with an undercover state investigator
from the Division of Criminal Justice.
The indictment was handed up to Mercer
County Superior Court Judge Linda R. Feinberg
on Dec. 11. The case has been assigned
to the Camden County Superior Court for
trial.
The
investigation was conducted by the Division
of Criminal Justice - Office of Insurance
Fraud Prosecutor. State Investigator Joseph
Alfieri, Civil Investigator Frank Crosson
and Deputy Attorney General Allen Ferg
were assigned to the investigation. DAG
Ferg represented the Division of Criminal
Justice - Office of Insurance Fraud Prosecutor
before the State Grand Jury. Assisting
in the investigation were Office of Insurance
Fraud Prosecutor state investigators Thomas
Turley and George Meyers and Det. Edward
Ramos of the Vineland Police Department.
The case was referred by the Cumberland
County Prosecutor’s Office.
"Automobile
theft, insurance fraud and phony automobile
insurance theft claims resulting from
automobile ‘give up’ schemes
remain a priority for the Office of Insurance
Fraud Prosecutor," said Prosecutor
Gooden Brown.
Insurance
Fraud Prosecutor Gooden Brown noted that
the Office of Insurance Fraud Prosecutor
realized a 143 percent increase in indictments;
a 91 percent increase in defendants charged;
a 79 percent increase in convictions (trial
convictions and guilty pleas); and a 80
percent increase in civil sanctions in
2002. The Office of Insurance Fraud Prosecutor
charged 225 defendants in 2002, versus
118 defendants in 2001. Additionally,
the Office of Insurance Fraud Prosecutor
imposed sanctions in 3,723 civil fraud
cases in 2002, compared to 2,063 civil
sanctions obtained in 2001. The Office
of Insurance Fraud Prosecutor collected
$20.6 million in penalties in 2002, up
from $15.8 million in 2001.
Noting
that some important cases have begun with
anonymous tips from the public, Insurance
Fraud Prosecutor Gooden Brown encouraged
anyone with information about insurance
fraud to contact the Division of Criminal
Justice - Office of Insurance Fraud Prosecutor’s
toll-free hotline at 1-877-55-FRAUD,
or to visit the insurance fraud web site
at www.NJInsurancefraud.org
.
Housed
in the Department of Law and Public Safety’s
Division of Criminal Justice and reporting
to the Attorney General, the Office of
the Insurance Fraud Prosecutor was established
by the Automobile Insurance Cost Reduction
Act of 1998 (AICRA). The Office is the
centralized state agency that investigates
and prosecutes civil and criminal insurance
fraud, as well as Medicaid fraud. Criminal
convictions for insurance fraud can result
in fines and imprisonment. Civil penalties
can include substantial fines and referral
for revocation or suspension of professional
licenses.
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